Farmers car insurance review and ratings 2024

Our take: Farmers Insurance, one of 10 largest insurance companies in the country, has some of the most expensive rates on average for liability and minimum-coverage policies compared to those of the four largest insurers in the U.S. Only Allstate was more expensive when it came to full coverage rates.

Siwei Gao, a a professor of insurance studies at Eastern Kentucky University, says that price isn’t everything for a lot of drivers.

“Drivers may opt for more expensive insurers due to factors such as superior customer service and claims handling, broader coverage and customization options, a strong local presence, and advanced digital tools,” she says.

“In addition, customers typically consider their entire insurance portfolio when making a choice.”

Farmers earns below-average marks in research analyst J.D. Power’s annual insurance shopping study, and its usage-based insurance (UBI) gets particularly poor marks in a separate J.D. Power survey.

Farmers has a slightly lower AM Best financial stability rating than some of its competitors. but it is still solid.

CRASH Network, an independent researcher that surveys auto body shops to assess how insurance companies handle claims servicing, gave Farmers a C- for its claim processing, which is on par with the other nine largest insurers. 
 

How we compared Farmers

To assess and rate insurance companies, we consulted research firm J.D. Power’s annual consumer surveys for claims satisfaction and digital shopping experience, the AM Best financial stability ratings, the CRASH Network’s nationwide poll of body shops, and each provider’s record of complaints to the National Association of Insurance Commissioners (NAIC). 
We then researched common customer pain points, such as ease of shopping for a policy online, premium costs and discount opportunities, and compared them to other top-ranked insurers, like Geico, Allstate, Progressive and State Farm.

Farmers versus top auto insurers

Who are the biggest auto insurers?

According to 2023 NAIC data, the largest auto insurance providers are State Farm, Progressive, Geico and Allstate. Farmers is the seventh-largest auto insurance provider, with $12.6 billion in annual premiums, considerably less than State Farm’s more than $46.7 billion.

How do Farmers’ rates compare to the top insurers?

Farmers’ rates are fairly high on average. When put up against the four largest insurance companies, Farmers has the highest state-minimum rates – granted, but just $1 over Allstate. Farmers’ liability-only coverage is the most expensive – more than $130 more expensive than Allstate’s. Farmers rate for full coverage is also high, but about $200 cheaper than Allstate.

The rates below were collected from auto insurance comparison site CarInsurance.com and its data partner Quadrant Information Services for single, 40-year-old male and female drivers of a 2023 Honda Accord LX with a good insurance score and no violations on their record for the following: state minimum liability insurance, standard liability with coverage limits of 50/100/500, and full coverage with liability limits of 100/300/100 and a $500 comprehensive and collision deductible.

How does Farmers rate in claims satisfaction?

According to J.D. Power’s annual U.S. Auto Claims Satisfaction Study, Farmers Insurance’s score of 878 out of 1,000 is the same as the survey average. That puts it ahead of Geico and Progressive, which both scored below average, but below Allstate and State Farm, both of which had above-average scores.  The best-rated provider, Amica, earned a score of 909.

The CRASH Network performs an annual survey of national body shops to rate their experiences in working with auto insurers on claims. Specifically, it asks body shops “How well does this company’s claims handling policies, attitude and payment practices ensure quality repairs and customer service for motorists?”

In its 2024 rating, none of the largest auto insurers managed to crack the top 10 ranking (the North Carolina Farm Bureau received the highest, A+ grade). Farmers earned a C-minus, along with State Farm and Geico. Progressive earned a C, while Allstate only managed a D+.

What is Farmers’ financial stability?

Farmers has received a financial stability grade of A (Excellent) from AM Best. It has more than $2 billion in assets, which AM Best considers an indicator of future financial stability. However, the four largest carriers all have slightly higher Superior ratings of A+ or A++ from AM Best.

Does Farmers receive a lot of complaints?

Farmers Insurance has a score of 0.8, according to the National Association of Insurance Commissioners Complaint Index. That means that Farmers receives fewer consumer complaints than the industry benchmark of 1.0, according to the NAIC.
State Farm, Allstate and Progressive all have slightly better Complaint Index scores, but Geico (0.91) ranks lower than Farmers. The table below outlines how the 10 largest carriers perform, according to the NAIC Complaint Index.

What is Farmers’ digital shopping experience like?

J.D. Power’s annual Insurance Digital Experience Survey rates Allstate slightly above average when it comes to online customer service via its online offerings. The insurer scored 713 out of 1,000, which is well above the segment average of 698. Only Allstate (713) and top-rated Progressive (737) did better.

In the shopping segment, Farmers did less well. Its score of 513 was slightly below the segment average of 516. Allstate did the best among the top four insurers with a score of 521, while Geico and Progressive both scored 519. State Farm scored 513.

How is Farmers for shopping in general?

Farmers’ overall score of 667 was below the average of 676, according to J.D. Power’s annual U.S. Insurance Shopping Study. The study also looked at customer satisfaction on a regional basis. Only in the Southeast did Farmers exceed the average score. Farmers has agents in 43 states, plus Washington D.C., but you can purchase coverage in all 50 states.

Is Farmers good at offering usage-based insurance?

J.D. Power’s Insurance Shopping Study also asked policyholders about their experiences with usage-based insurance (UBI). In this category, Farmers received the worst score among the insurers included: 796 out of a possible 1,000, and below the segment average of 821. Among the top carriers, Geico had the best score, 837.

Mark Friedlander, director of corporate communications for for the Insurance Information Institute (Triple-I), which provides education and research for the industry, says UBI offers drivers the potential to earn big savings, still many drivers are reluctant to accept the technology.

“According to a study conducted by our affiliate, the Insurance Research Council, the largest barrier to signing up for a UBI program is concerns over privacy,” he notes. “Other reasons drivers are reluctant include not being interested in participation and apprehension about increased insurance costs.”

Farmers’ UBI is called Signal. Signal tracks driving behaviors like braking, speeding and phone habits using an app you can download for your phone. The app also has CrashAssist, which can alert emergency services if it detects an accident.

Key offerings by Farmers

Farmers offers the usual standard auto insurance options, plus many add-ons to expand and customize coverage to fit various needs. Here’s a rundown of Farmer’s key offerings:

• Liability insurance covers injury to others and property when the insured person is at fault. It’s required in all states except Virginia and New Hampshire.
• Collision insurance covers costs to repair or replace your vehicle and another driver’s vehicle when you’re at fault in an accident. It applies to collisions with another vehicle and objects.
• Comprehensive insurance covers accidents and damages that occur outside of collisions, such as hail, theft, wind, vandalism and pest damage.
• Uninsured/underinsured motorist insurance covers the difference when the other driver at fault in an accident doesn’t have sufficient coverage to pay for damages.
• Medical payments (MedPay) covers the cost of medical treatment for insured drivers and their passengers regardless of accident fault.
• Personal Injury Protection (PIP) will contribute to rehabilitation and lost wages costs up to the limit outlined in the policy, regardless of who’s at fault for the accident.

Farmers’ add-on options include the following:

• Accident forgiveness
• Additional liability through personal umbrella insurance
• Customized equipment
• Full windshield and glass coverage
• Glass deductible buy-back
• Loss of use
• New car replacement
• Original Equipment Manufacturer (OEM) parts replacement
• Rental car reimbursement
• Rideshare
• Spare parts
• Towing and roadside assistance

Making the choice: Why go with Farmers?

Farmers is available in all 50 states, with agents in 43 states and offers a user-friendly online shopping experience. It sells a full suite of insurance products outside of auto insurance, including property, life, business, motorcycle, and umbrella coverage.

Farmers isn’t the cheapest insurance provider on the market, so you’ll want to take advantage of any discounts available to you. Setting a higher deductible may lower your insurance premiums if you can afford it, and you may see additional savings by bundling your auto coverage with a home or renters insurance policy.

Before you sign up: Things to consider

Farmers isn’t the cheapest insurance provider on the market, so you’ll want to take advantage of any discounts available to you. Setting a higher deductible may lower your insurance premiums if you can afford it, and you may see additional savings by bundling your auto coverage with a home or renters insurance policy.

Farmers Car Insurance – Our expert verdict

Choosing the right auto insurance company comes down to price, service and convenience. If you value an easy online shopping experience, consumer feedback suggests Farmers delivers. But customer service is lacking, according to J.D. Power. And Farmers’ sample rates are considerably higher than other insurers like Geico.

The best way to find out if Farmers is the right car insurance for you is to compare rates with at least three different insurers, using the same coverage amounts for each. If the idea of hunting for car insurance on your own is daunting, consider working with an independent insurance agent or broker, who represents a number of carriers, says Michael Silverman, Founder and CEO of New York-based Silver Lining Insurance.

“A professional insurance broker [can] review your entire family’s needs… so there can be options today and in the future,” he says.

Methodology

The rates below were collected from auto insurance comparison site CarInsurance.com and its data partner Quadrant Information Services for single, 40-year-old male and female drivers of a 2023 Honda Accord LX with a good insurance score and no violations on their record for the following: state minimum liability insurance, standard liability with coverage limits of 50/100/500, and full coverage with liability limits of 100/300/100 and a $500 comprehensive and collision deductible.

We analyzed more than 53 million quotes, more than 34,000 ZIP codes and 170 insurance companies nationwide. 

Note: 100/300/100 means up to $100,000 for the medical bills of those you injure, up to $300,000 per accident for bodily injury liability for all persons injured in one accident, and $100,000 to repair other drivers’ cars and property that you damage.

AM Best’s Financial Strength Ratings (FSRs) are an independent assessment of an insurer’s financial strength and ability to meet its policy and contract obligations. Best’s FSRs are based on a graded scale from A++ (Superior) to D (Poor). For more information, visit AM Best’s ratings guide. For the latest AM Best credit ratings, visit www.ambest.com 

The National Association of Insurance Commissioners (NAIC) Complaint Index analyzes consumer complaints submitted to state insurance departments. The Complaint Index is used to compare a company’s performance to others in the market. The National Complaint Index is benchmarked at 1.0. For example, a company with a score of 2 has a complaint index that is twice as high as expected in the market. A company’s complaint index score is determined by dividing the number of complaints by its share of premiums in the U.S. market. 

J.D. Power is a marketing, consumer intelligence, and data and analytics company that publishes a variety of studies on the insurance industry and carriers. The rankings included in this story originate from JD Power’s 2024 U.S. Insurance Digital Experience Study, 2024 U.S. Insurance Shopping Study and 2023 U.S. Auto Insurance Study.

CRASH Network’s Insurer Report Card is an annual survey of more than 1,100 collision repair professionals nationwide. Participants awarded each company a grade from A+ to F based on this question: “How well does this insurer's claims handling policies, attitude and payment practices ensure quality repairs and customer service for motorists?” Those polled also indicated whether or not they participate in that insurer's direct repair program.